Centro under pressure to sell assets

PM - Monday, 18 February , 2008 18:50:00

Reporter: Brigid Glanville

MARK COLVIN: Finally to business and finance on the markets with Brigid Glanville.

BRIGID GLANVILLE: Troubled property group Centro remains under heavy pressure to sell assets or to find a cornerstone investor, after lenders agreed to give the United States shopping mall owner, a two-month reprieve on nearly $5-billion in debt.

The company now has until the 30th of April to refinance.

Centro got into trouble when it borrowed heavily to buy US shopping malls, just before the mortgage crisis hit.

Centro's share price rose 3.3 per cent today to 63 cents.

A former Coffs Harbour mortgage broker, has been sentenced to five years in prison after pleading guilty to seven fraud charges brought by the Australian Securities and Investments Commission or (ASIC). The former broker will serve a minimum of three years in prison.

The charges relate to funds invested by nine of his former clients, who were located in Sydney and Coffs Harbour.

Medical centre operator Primary Health Care completed the first part of a share buy back to help fund its $2-billion takeover of Symbion Health.